Accommodation provided by an employer can be taken into account when calculating the National Minimum Wage.
No other kind of company benefit (eg food, a car, childcare vouchers) count towards the National Minimum Wage.
Accommodation offset rates
The accommodation rates and the National Minimum Wage rates are set in October each year. The current rates apply from 1 October 2015.
|2015 (current rate)||£5.35||£37.45|
Use the National Minimum Wage calculator to check if it’s been paid.
Using the offset rate to work out the minimum wage
If an employer charges more than the offset rate, the difference is taken off the worker’s pay which counts for the National Minimum Wage.
This means the higher the accommodation charge, the lower a worker’s pay when calculating the National Minimum Wage.
If the accommodation charge is at or below the offset rate, it doesn’t have an effect on the worker’s pay.
If the accommodation is free, the offset rate is added to the worker’s pay.
See examples of accommodation rates for National Minimum Wage calculations.